Indian rupee depreciated against the US dollar on Tuesday, pressured by sustained foreign capital outflows amid global trade uncertainties. Foreign Institutional Investors offloaded equities worth Rs 2,831.59 crore on Monday, according to exchange data. The markets are awaiting the Reserve Bank of India's (RBI's) Monetary Policy Committee decision, which will be announced on Wednesday. Some concern also came with the Asian Development Bank (ADB) stating that despite a strong 7.8 per cent growth in the first quarter, the Indian economy is expected to grow at 6.5 per cent in the current financial year (FY26) as the impact of US tariffs on Indian exports will reduce prospects, particularly in the second half. On the global front, US dollar declined against most major currencies, amid fears of a potential United States (US) government shutdown, with Republicans struggling to persuade Democrats to support short-term funding bill before Tuesday’s midnight deadline. 

Finally, the rupee ended at 88.81 (Provisional), depreciated by 6 paise from its previous close of 88.75 on Monday. The currency touched a high and low of 88.85 and 88.69 respectively.